Helping you and the economy grow
EconoBEE was recently asked to participate in a live, televised interview by eNCA in relation to the Supreme Court of Appeal’s ruling on the PPPFA (preferential procurement policy framework act). Headlines such as “Court rules BEE pre-disqualification in public procurement invalid, unconstitutional” got many interested parties talking about B-BBEE. Our...
Fronting is a form of fraudulent misrepresentation in an attempt to circumvent the BEE codes. There are various forms of fronting indicators listed in legislation. In consulting, we have come across some glaring examples which we would like to point out: The black people identified by an enterprise as its...
B-BBEE News! A recent article by Business Tech, regarding South African companies trying to dodge BEE laws, illustrates how critical it is to understand and adhere fully to the B-BBEE Act. Zodwa Ntuli, the current B-BBEE commissioner, said that 83% of complaints received since 2016 were related to fronting. The...
ALIGNMENT OF WORKPLACE POLICIES WITH EMPLOYMENT EQUITY ACT On the 20th of August 2020, the Minister of Employment and Labour published the Draft Code of Good Practice on the Prevention and Elimination of Violence and Harassment in the World of Work (Draft Code) for public comment. The deadline for...
INDICATIVE PROFIT MARGIN CALCULATION The indicative profit margin is applied when a measured entity has made less than a quarter of the industry norm. Enterprise development, supplier development as well as socio-economic development are based on the percentage of either a NPAT or an indicative profit margin where a measured...
Skills development is a priority element of the B-BBEE scorecard that requires a measured entity to spend on the upskilling of its staff/external people. Due to its nature, a measured entity needs to spend in order to earn points with regards to the skills development element and, as a priority...
With the Department of Labour’s new stern approach to transformation, it is highly likely that the number of inspections will increase dramatically! These inspections will be focused on your company’s Employment Equity Plans and, specifically, whether or not the company has been implementing their plan as promised. These Employment Equity...
The B-BBEE Commission recently released the annual B-BBEE trends report for the 2019 calendar year. The purpose of the report is to assist the B-BBEE Commission to determine how organs of state, public and private entities in South Africa are performing against the generic and sector Codes of Good Practice....
Quoting slow progress since the introduction of Employment Equity regulations, it seems the Department of Labour will be introducing a stern approach to driving transformation. EconoBEE has ascertained the following: Numerical targets will be set by the department and these will be specific to your economic sector. Previously, companies set...
Earn more points on skills development: Absorption Bonus points under Skills Development Employers can earn 5 bonus points under skills development through the absorption of learners. In the 2013 Amended Codes of Good Practice (COGP) absorption was defined as the following: Absorption: means a measure of the Measured Entity’s ability to successfully...
In terms of Clause 2.3 of the Gazette No: 40407 it states that ‘’The compliance targets for 2.11.1,2.1.1.2, 2.1.2.1, 2.1.2.2 and 2.13 of the Skills Development Scorecard are based on the overall demographic representation of Black people as defined in the Employment Equity Act. For scoring purposes, the targets should...
1) The Department of Employment and Labour’s response to the impact of COVID 19 on the implementation of Employment Equity in the Labour Market Please find below a brief summary of the Commission for Employment Equity’s (CEE) response to the COVID-19 pandemic: First and foremost, they are aware of the...
As we enter the 4th week of our country-wide lockdown, I sincerely hope that everyone is coping as best they can, staying safe and coming to terms with working from home! To all our clients in South Africa, we truly value your support and business and look forward to continue...
Firstly, we would like to wish all those that celebrate, a Happy Easter 🙂 . We at EconoBEE hope you are staying safe and getting the hang of working from home! Our team has remote working capabilities and so is hard at work during this lockdown period, so please do...
In the new ICT codes, provision is made for equity ownership by historically disadvantaged persons (HDG). HDG means black persons, women and persons with disabilities and youth, who before the Constitution of the Republic of South Africa 1996 came into operation were disadvantaged by unfair discrimination on the basis of...
We’ve attached a document that gives an outline of EconoBEE’s learnerships and apprenticeships currently on offer. Before we look at that though, let’s take a look at how and why skills development in South Africa is so important, within a BEE framework. Grow your own timber through skills development...
In the past two newsletters we touched on the YES initiative and the importance of succession planning. In this newsletter we would like to discuss how it can all link and make business sense. As previously mentioned, none of these activities will ever work in any entity if they do...
Are you ready for an inspection by the Labour Department in terms of your Employment Equity compliance? The 19th report of the Commission on Employment Equity entitled: “Transformation makes business sense” reflects the increase in employment equity reporting especially in the private sector. Part of the increase in number is attributed...
“All that glitters is not gold”. True and valid ownership in Broad-based black economic empowerment deals using trusts. The aim of the Broad-Based Black Economic Empowerment Act 53 of 2003 (B-BBEE Act) is the facilitation of B-BBEE by giving access to the economy which results in the necessary economic transformation...
A few weeks ago, we sent out a newsletter to inform all the designated employers that the Employment Equity submissions to the Department of Labour window period has officially opened. We at EconoBEE thought we should take a moment to remind you to get those submissions in and to inform...
On the 25th of September 2019 the draft amendment Tourism B-BBEE sector codes were announced. The draft amendment Tourism sector codes aim to create a sustainable tourism industry that is globally competitive, but also transformed with the empowerment of Black people. The sub-minimum requirement for the priority elements of ownership,...
Sales of Assets: Grey Area of Interpretation Sale of assets is a recognized avenue to facilitate ownership within B-BBEE ownership deals. Is there a grey area of interpretation of how the sale of assets should be calculated? The requirements for a sale of an asset to qualify for ownership,...
I’d like to share a story with you. Recently a very large company lost out on a huge tender due to not having a favourable BEE rating. Their product was great, their service was great, but their BEE status was not great. I often hear people saying, “I’m in a...
In our previous newsletter we touched on the disconnect between Management Control and Employment Equity. In this newsletter, though, we are reminding you that the Employment Equity report submission window period to the DoL runs from the 1st of September 2019 to 15 January 2020. Designated employers (companies, government departments)...
A designated employer is required in terms of the Employment Equity Act to create a representative workforce at each occupational category/level. An employer is held to be designated if they employ 50 or more employees. Should an employer have fewer than 50 employees, but have a total annual turnover as...
In one of our previous newsletters, we mentioned that B-BBEE still remains an absolute necessity and will be around for many years to come, albeit in an evolved form. President Cyril Ramaphosa’s recent speech to the National Assembly, is proving this true: “We are not going to scrap B-BBEE, because...
The date of the 18th of July has been adopted by the international community as Nelson Mandela International Day. In South Africa, we have the opportunity to take this one step further by embracing the aims of the Mandela Day movement and incorporating this within our Socio-Economic Development (SED) strategies....
News within the B-BBEE community (and South African Business) has lately been dominated by articles discussing fronting and recent strides being made by the B-BBEE commission in clamping down on unlawful transactions, specific to the ownership element. In a recent article Busisiwe Ngwenya, the executive manager for compliance at the...
Tired of buying BEE points? Or rather see BEE as a grudge purchase? Want to make a genuine difference in South Africa? Want to grow your business? Contact EconoBEE to explain how our revolutionary managed service has helped thousands of clients implement sustainable BEE activities in a way that makes...
Recently we’ve been talking a lot about ownership and how to implement it correctly in your business, but now the new topic is around the latest amendments to the codes. We have analyzed the new amendments that were released on 31 May 2019 (Government Gazette No 42496). Some interesting changes...